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Online Sites Shake Up Hidebound Retailing in India

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KAY JOHNSON, AP Business Writer

MUMBAI, India (AP) — Finding a way into India’s vast but vexing market has long frustrated foreign retailers. Now, overseas investors are pouring billions of dollars into e-commerce ventures that are circumventing the barriers holding back retail powers such as Wal-Mart and Ikea.

Some investors see India as the world’s next big e-commerce opportunity, with the upcoming mammoth public stock offering of Chinese online giant Alibaba hinting at the potential.

Online shopping is still in its infancy in India at $2.3 billion of an overall $421 billion retail market in 2013, according to research firm Crisil. But it is growing fast and the potential of reaching a mostly untapped market of 1.2 billion people has sparked a funding-and-expansion arms race.

Flipkart, a Bangalore-based company founded in 2007 by two former Amazon employees, last month announced it had raised $1 billion in mostly foreign capital after building its registered users to 22 million.

A day later, Amazon raised the stakes with founder Jeff Bezos saying the company would pour $2 billion into developing its India business.

Snapdeal.com, whose investors include eBay Inc., has raised at least $234 million in the past year, and recently local media have reported that Rajan Tata of India’s Tata Group conglomerate is considering a personal investment in the company.

The flood of overseas capital comes even though foreign investment in online retailing is not permitted in India, which would seem an even more stringent barrier than the local product sourcing requirements that caused Wal-Mart and IKEA pull back on plans to build megastores. However, e-commerce businesses that are partly or wholly foreign owned have found a way to work around the rules to offer books, clothes and electronics on their sites.

Neither Flipkart nor Amazon technically engage in online retailing. Instead, to get around the foreign investment ban, both companies serve as Internet-based hosts for thousands of third-party sellers, taking commissions in exchange for marketing and, often, arranging shipping of the products.

Even Amazon’s Kindle e-reader is not sold directly by the company. On the Amazon.in site, the latest Kindle reader is sold by Infinity Retail Ltd., a subsidiary of Tata Group, which purchases the device from Amazon. Customers get the device but pay more for the extra layer of reselling: the Kindle that sells for $119 on the U.S. online store goes for 9,999 rupees ($167) on the Indian website.

India’s Finance Minister Arun Jaitley mentioned liberalizing e-commerce in his July budget speech, but so far the government has not taken any steps to change the foreign investment restrictions.

It may be a while before the big investment outlays translate into profits. Most of the billions raised by e-commerce businesses will be plowed back into building up the companies, from acquiring warehouses to developing shipping networks and also offering deep discounts to squeeze smaller players out of the market, said Ajay Srinivasan, director of Crisil Research , which is majority funded by Standard & Poor’s.

“Financial muscle ensures you are able to withstand the initial few years when you are not going to be making money and you’ll be burning cash,” Srinivasan said. “It also allows you to offer better deals to customers to build market share.”

The battle is playing out on TV and in newspapers.

Amazon.com India is running front-page spreads touting its next-day delivery service and easy return policy. Snapdeal has a television ad with a put-upon housemaid unpacking all the purchases a happy middle class family has made online and complaining that with all the money they are saving, she should get a raise.

India’s e-commerce revenue has grown explosively over the past three years despite only 11 percent of Indians having access to the Internet, according to a report by KPMG and the Internet & Mobile Association of India.

Online sales are growing at more than 50 percent annually and are on track to reach $8.3 billion by 2016, Crisil estimates. KPMG estimates that e-commerce could contribute 4 percent of India’s GDP by 2020, compared to a projected 10 percent for the country’s IT and call-center outsourcing industry.

Such big potential for online retail is made possible in part by India’s continued restrictions on big box retailers that have Indians starved for choice.

India is one of the last major markets to mostly keep multinational retailers from setting up shop. Despite approving 51 percent foreign investment in retail businesses in 2012, India has set stringent regulations intended to protect small manufacturers and mom-and-pop shops that still make up 93 percent of the country’s retail sales.

As a result, big players such as Wal-Mart and IKEA have put opening their own retail stores on hold. India has a few large retail chains, Tata Group’s Croma for electronics and department store chain Big Bazaar, but they are mostly limited to major cities.

Still, India’s e-commerce businesses face several other challenges.

Fewer than 12 percent of Indians have credit or debit cards, meaning that to expand, Amazon, Flipkart and Snapdeal have had to accommodate cumbersome cash payments.

“Cash-on-delivery is very important. It’s a very Indian concept,” said Ashwin Vellody, an information technology expert at KPMG. “But that is inefficient and expensive for companies.”

The companies must also develop logistics and distribution systems in a country notorious for creaking infrastructure and inefficient transport.

The biggest challenge, though, will likely be price wars in the fierce fight for market share, said Srinivasan, the Crisil director.

“From a consumer perspective, it means better days to come,” he said. “I think the bargains they will be able to get online will only get better.”

 

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Statement from the President of the National Association of Black Journalists on Press Ban

TEXAS METRO NEWS — The National Association of Black Journalists (NABJ) condemned President Donald Trump’s decision to deny access to MS NOW journalists and his threats against CNN and Politico due to unfavorable coverage. The NABJ stated that journalists hold power accountable for the American people, and government officials cannot grant or withhold access based on reporting they like or dislike.

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Statement from the President of the National Association of Black Journalists on Press Ban

NABJ condemns President Donald Trump’s decision to deny access to MS NOW journalists and his threat to exclude CNN and Politico because of coverage he dislikes. The role of journalists is to hold power accountable on behalf of the American people. Government officials cannot reward reporting they find favorable with access, or withhold access as punishment for journalists who have scrutinized or criticized them. This retaliation is a threat not only to the news organizations being targeted, but to every journalist working to report independently and without fear of government reprisal. The White House belongs to the American people, and they have a right to know what their government is doing. Journalists must be free to ask difficult questions and report the answers. A free and independent press is not a privilege granted at the discretion of any president. It is a cornerstone to a healthy and functioning democracy. The First Amendment can never be optional.

Based on reporting by Texas Metro News.



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HBCU Leaders, Corporate Partners Convene in D.C. to Strengthen Support for Black Colleges’ Athletic Programs

COLUMBUS TIMES — HBCU athletic conference commissioners, university presidents, and corporate leaders gathered in Washington on Tuesday, September 15, for the Salute to HBCU Sports Leadership Reception. This invitation-only event, hosted at Gensler’s K Street office, aimed to deepen investment in historically Black colleges and universities.

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HBCU Leaders, Corporate Partners Convene in D.C. to Strengthen Support for Black Colleges' Athletic Programs
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Commissioners from HBCU athletic conferences joined university presidents and corporate leaders in Washington on Tuesday, Sept. 15, for the Salute to HBCU Sports Leadership Reception — an invitation-only gathering aimed at deepening investment in historically Black colleges and universities.

Hosted at Gensler’s K Street office, the evening brought together conference commissioners, campus presidents, and executives from sports, media and design organizations under the theme “Building Partnerships. Celebrating Excellence. Advancing HBCUs.” Gensler highlighted its partnership with Paxton Baker on the event in a post on Instagram, showcasing the room full of HBCU presidents and conference leaders.

Five Conferences, One Room

Commissioners from four NCAA conferences and one NAIA conference were on hand, representing institutions that compete across Division I, Division II and the NAIA:

Anthony Holloman — Southern Intercollegiate Athletic Conference Charles McClelland — Southwestern Athletic Conference Jacqie McWilliams Parker — Central Intercollegiate Athletic Association Sonja Stills — Mid-Eastern Athletic Conference Kiki Baker Barnes — HBCU Athletic Conference

Their presence linked leadership from across the HBCU athletics landscape with campus administrators and organizations working in event management, design and media.

Presidents and Black Press Leadership in the Room

Among the university presidents in attendance were Prairie View A&M’s Tomikia P. LeGrande and Bowie State’s Aminta H. Breaux.

LeGrande’s appearance came just days after the Thurgood Marshall College Fund named her the recipient of its Educational Leadership Award, as announced by Prairie View A&M. She was honored at TMCF’s 39th Anniversary Gala on Sept. 12 in Washington. LeGrande has served as Prairie View A&M’s ninth president since June 2023.

Breaux, who has led Bowie State since July 2017, previously chaired the CIAA’s board of directors, according to her university biography.

Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association, also attended — fitting, given the NNPA’s role as one of the reception’s presenting partners. Chavis and HBCU GO’s Lawrencia Moten conducted two 30-minute interview sessions with the conference commissioners, covering topics ranging from the NIL era to conference growth and the experience of leading HBCU athletics, according to HBCU GO President Curtis Symonds, who spoke with HBCU Legends about the sessions.

Corporate and Institutional Partners

Five organizations presented the reception together:

Gensler — the architecture and design firm that hosted the event Events DC — the District’s convention and sports authority USA Track & Field — the sport’s national governing body National Newspaper Publishers Association — representing Black newspaper publishers HBCU GO — the network dedicated to HBCU sports and culture

That mix of partners pointed to a range of possible collaborations ahead, from athletic facilities and event operations to sports programming and media coverage.

Building Beyond the Scoreboard

What stood out most was the mix of people in the room — conference commissioners setting strategy for their leagues, university presidents shaping institutional priorities, and corporate partners bringing resources and expertise from multiple industries.

With college athletics undergoing rapid change, particularly for HBCUs navigating the NIL era and shifting conference dynamics, the reception offered a venue for candid conversation and relationship-building. Its underlying purpose went beyond athletics: using sports as an entry point to broader opportunities in education, workforce development and economic growth for HBCUs.

Based on reporting by Columbus Times.



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At CBCF Conference, a Panel Asks What Black Public Figures Owe the People Who Follow Them

COLUMBUS TIMES — The Congressional Black Caucus Foundation’s Annual Legislative Conference featured a panel titled “Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach.” Actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét, and rapper Yung Joc discussed how public figures can translate influence into real-world change.

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At CBCF Conference, a Panel Asks What Black Public Figures Owe the People Who Follow Them
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WASHINGTON — Among the more than 100 policy forums and brain trusts at this year’s Congressional Black Caucus Foundation Annual Legislative Conference was a conversation about influence itself: who has it, and what they do with it.

"Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach" brought together actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét and rapper and radio host Yung Joc. The session looked at how entertainers, creators and elected officials can turn public attention into real-world change.

The panel took place at the 55th Annual Legislative Conference, a five-day event in Washington that began Wednesday. This year’s theme is "Rooted, Ready & Rising," and the conference coincides with the CBC Foundation’s 50th anniversary. CBCF President and CEO Nicole Austin-Hillery has said the gathering is meant to "combine celebration with purpose," while taking up issues including voting rights, economic opportunity, education, health disparities and criminal justice.

That mix of celebrity and policy is a long-running feature of the conference, which brings lawmakers, advocates, entrepreneurs, students and entertainers into the same rooms. The panel’s premise reflects a broader question as creators reach audiences that rival traditional media.

A career built on both stage and street

Sampson is a natural fit for that conversation. The Houston native is known for television and film work, including HBO’s Insecure, and for his activism off screen. He co-founded BLD PWR, a 501(c)(3) nonprofit that combines entertainment, education and activism.

The organization says its mission is to "reimagine and realize the liberated future we know our people deserve." It works to mobilize entertainment-industry figures and organize communities around racial, gender, immigration, economic and environmental justice, mental health and wellness, and opposition to state violence. BLD PWR emphasizes storytelling and community healing, and it centers the voices of Black, Indigenous and other marginalized communities.

What to watch

The conference runs through Sunday at the Walter E. Washington Convention Center. Details on sessions and registration are available through the CBC Foundation.

Based on reporting by Columbus Times.



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Black Press

Newsom Signs Addictive Social Media Law to Protect Kids

Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.

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Word Count: 391

Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.

AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.

The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.

“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.

Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts. 

The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.

AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.

Lowenthal said the new rules represent a shift toward greater accountability for technology companies.

“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.

The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.

Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.

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Black Press

Newsom Signs Addictive Social Media Law to Protect Kids

Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.

Published

on

iStock
iStock

Word Count: 391

Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.

AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.

The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.

“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.

Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts. 

The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.

AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.

Lowenthal said the new rules represent a shift toward greater accountability for technology companies.

“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.

The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.

Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.



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Black Press

OP-ED: How Head Start Also Helps Parents

BLACKPRESSUSA NEWSWIRE — “I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”

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Paris Hill received the Ron Herndon Head Start Parent Scholarship award.
Paris Hill received the Ron Herndon Head Start Parent Scholarship award.

Ron Herndon Head Start Parent Scholarship awardee Paris Hill, of Sunbelt Human Advancement Resources in Greenville, South Carolina, says that Head Start has been instrumental in reaching her dreams.

“Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better—not only as parents but for yourself.”

Hill embodies the spirit of NHSA’s Ron Herndon Scholarship, which celebrates a Head Start parent who goes above and beyond in their community.

During the pandemic, Hill participated in virtual classroom instruction with her children and engaged in parent virtual activities such as Parent Committee meetings and financial literacy classes. She recently contributed over 96 hours to her program.

“I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”

Hill enrolled in college and pursued a bachelor’s degree in applied sciences with a concentration in business management. She has met and exceeded her personal goal of becoming a nail technician and creating her own business.

The $2,500 parent scholarship supported her vision. “Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better — not only as parents but for yourself.”

She has an uncommon career goal — to become a mortician — and has already found part-time work. She has found it rewarding to assist families who were going through challenging times because of the death of a loved one.

“When I first applied for the parent scholarship program, I was excited and this was my time to show what I’m capable of. It fills my heart with joy knowing I had a team of teachers and directors pushing me to do better and acknowledging me as parents and not just as a mom.”

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